Error on iTunes: the sim card inserted in this iPhone does not appear to be supported.

error on iPhone:
No SIM card installed
Insert a valid SIM with no PIN lock
to activate iPhone.

The image on the screen is the USB cord with the

iTunes icon, a small closed-lock icon on the very

top, and "slide for emergency" on the bottom. The

SIM message is overlayed in the middle.

Heeeeeeeeeeeeeeeelllllllllllllllllllllllpppppppppp ppppppp

This is an easy one for me to answer :
Let Itunes restore to the latest firmware which is 3.1.3
Download 3.1.2 ipsw
Download Redsn0w 0.9.4
Download BL 3.9 & Bl 4.6
Run Redsn0w and follow the instructions, do you count and triggering properly.
Have patience, wait , it takes awhile atleast 5 to 10 minutes to finish the process.
Once done, Voila , you will be jailbroken and unlock at 3.1.3
Read this link for a clearer explanation;http://modmyi.com/guides/how-jailbreak-unlock-3-1-3-iphone-2g-windows-os-x/